hello seeker, coincidentally i just had 4-hrs 2-on-2 dinner with soros' ex-partner at fancy joel-robuchon.com french food restaurant in japanese setting served spanish tapas fashion (it served all good wines by the glass by simple expediency of charging by the bottle), and got reaffirmation on direction on worthwhile to-dos, as well as trajectory of what might be's
i did 3 tapas comprised of lobsters, crab, frog legs, and such and two appetizers as main course, including a foie gras/wagyu beef mini burgers (sure beats bacon cheese burger), lots of liquid nutrients, exchanged books, and did shocking chocalate dessert
in the mean time, just in in-tray, the phoenix real estate club just notified below:
Uchikanda 282, Tokyo, Japan
This is an office building located at Chiyoda-Ku, a prime Tokyo business district. Our all-in acquisition cost of this building was US$65 million and it was sold for US$111 million. At the time of purchase, this building came with two problems: it was not in compliance with the new Japanese earthquake safety codes, and the building was outdated both inside and out. We spent approximately US$5 million to improve the building’s architecture to bring it above earthquake prevention standards as well as renovating the interior and exterior façade. As a result, rental values have improved significantly by 34% compared to pre-acquisition rents.
Phoenix has converted an unattractive building into an institutional product. We have now sold the building to the real estate fund division of one of the largest U.S. investment banks. The all-in equity cost of this property is US$20 million and the holding period is 3.5 years with a leverage of 72% Loan-to-Cost. This exit generates a gross IRR of 54.9% and an equity multiple of 3.6x. The sales proceeds were received today. Phoenix owns 70% of this project.
Upon distributing the proceeds of this sale, we will have returned 130% of the total capital commitment of the Fund back to our investors on a gross basis. This sale represents the seventh exit of Fund 2. Eight deals remain unrealized. As of today, we believe that most of the unrealized deals are very favourably in-the-money.
1 Gross Exit Price: exit price on a pre-tax, pre-fees basis.
2 Gross Profit, Gross IRR and Equity Multiple calculations represent our best estimates and are subject to the final audit of the Special Purpose Structure (TMK) of the property
3 Based on exit exchange rate of US$1 = JPY108. Figures may vary depending on exchange rate at distribution.
The gods, they are smiling, and may they continue to do so, always :0)
let the singular pleb cheer over the claimed nickels and dimes scavenged here and there by supposedly forecasting each twist and every turn of the market, i say :0)
recommendation: yes, hoardeverything ;0) |
